Liberate to acquire VirtualModem

CBS.MarketWatch.com

Liberate, a provider of server software, announced Thursday that it will acquire VirtualModem, a joint venture of Source Media and Insight Communications, in a deal worth $193.8 million.

Under the terms of the transaction, Source Media
srcm
and Insight
icci
will sell their jointly owned VirtualModem software and assets related to the business for 886,000 shares of Liberate
LBRT, +0.89%
common stock. Shares of Liberate gained 13 1/2 to close at 218 3/4 Thursday, bringing the value of the deal to $193.8 million.

"This acquisition will enable Liberate to deliver interactive TV to the broadest range of set-top boxes in the marketplace," Mitchell Kertzman, Liberate's chief executive said in a

The amount of shares Liberate will spend excludes the San Carlos, Calif.,-based company's recently announced two-for-one stock split, which goes into effect on or around Jan. 14.

The shares will be distributed equally between Source Media and Insight. The companies anticipate the transaction to be completed during the first quarter of 2000.

As a result of the news, Robertson Stephens' senior Internet analyst, Michael Graham reiterated his "buy" rating on Liberate, stating in a research note that VirtualModem "could speed the rollout of its platform to service providers and OEMs, which deploy and manufacture low-end set-top boxes."

Additionally, Insight Communications said it has chosen Liberate's software platform to deliver interactive television services. See press release.

Liberate will also make the VirtualModem a preferred content provider, so its cable partners can benefit from the local content product LocalSource and the interactive program guide, SourceGuide.

VirtualModem's technology will continue to be updated, Liberate said, so programming assets can be ported to other platforms.

Intuit jumps on Quicken TurboTax offerings

Intuit announced an agreement Thursday, under which WingspanBank.com, an affiliate of Bank One
ONE, -14.29%
will offer its newly launched "Quicken TurboTax for the Web" free to its customers.

The news follows several Wednesday announcements related to the expanded availability of Intuit's
INTU, +0.02%
tax program, which helps consumers prepare and file federal and state tax returns online.

Shares of the company jumped 8 7/8, or13 percent, to 80.

On Wednesday, Intuit said it formed an alliance with Concentrex Incorporated
cctx
to bring TurboTax to consumers through the Web sites of financial institutions.

The company also announced Wednesday that major online retail and Internet-related service sites, including America Online
aol
Beyond.com
bynd
and WalMart.com
WMT, +0.30%
now offer access to the online tax program.

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